Module 2.3 FEB 3 Quiz MKTG 111

Customer Value-Driven Strategy

Creating customer value and building profitable customer relationships by deciding which customers to serve and how.

Market Segmentation

Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies.

Geographic Segmentation

Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods.

Demographic Segmentation

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Age and Life-cycle Segmentation

Dividing a market into different age and life-cycle groups because consumer needs and wants change with age.

Gender Segmentation

Dividing a market into different segments based on gender; commonly used in clothing, cosmetics, toiletries, and magazines.

Income Segmentation

Dividing a market into different income levels, often used by marketers of luxury goods or convenience services.

Psychographic Segmentation

Dividing a market into different segments based on lifestyle, shared personality traits, beliefs, values, and attitudes.

Behavioural Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Occasion Segmentation

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Benefit Segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product (e.g., Gillette segments based on shaving benefits).

User Status

Segmenting a market into non-users, ex-users, potential users, first-time users, and regular users.

Usage Rate

Segmenting a market into light, medium, and heavy product users; heavy users often account for a high percentage of total consumption.

Loyalty Status

Segmenting a market by consumer faithfulness to brands, stores, or companies (ranging from "hard-core loyals" to "switchers").

Multiple Segmentation

The practice of using several segmentation bases to identify smaller, better-defined target groups.

Market Targeting

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Competitive Advantage

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Competitor Myopia

A "nearsighted" focus on direct competitors while missing hidden threats or failing to see how the market is evolving (e.g., Kodak focusing on film instead of digital).

Industry Point of View

Identifying competitors as companies offering the same product or class of products (e.g., Pepsi seeing Coca-Cola as its primary rival).

Market Point of View

Identifying competitors as companies trying to satisfy the same customer need or build relationships with the same customer group (e.g., a movie theater competing against Netflix).

Benchmarking

Comparing a company’s products and processes to those of competitors or leading firms in other industries to identify best practices and improve performance.

Customer Value Analysis

An assessment conducted to determine what benefits target customers value and how they rate the relative value of various competitors’ offers.

Strategic Group

A group of firms in an industry following the same or a similar strategy in a given target market.

Strong vs. Weak Competitors

Choosing to compete against well-resourced firms for greater returns (strong) or smaller firms requiring fewer resources (weak).

Close vs. Distant Competitors

The tendency to compete with firms that most resemble the company (close) rather than those that are significantly different.

Good Competitors

Competitors that follow industry rules, help share the costs of market development, and increase total demand.

Bad Competitors

Competitors that break industry rules, try to buy share rather than earn it, and take inordinately large risks.

Blue Ocean Strategy

A strategy focused on seeking uncontested market spaces where there are no direct competitors, making the competition irrelevant.

Market Leader

The firm in an industry with the largest market share; typically leads in price changes, new product introductions, and promotion spending.

Market Challenger

A runner-up firm that is fighting aggressively to increase its market share by attacking the leader or other competitors.

Market Follower

A runner-up firm that chooses to maintain its current market share without "rocking the boat" or provoking the leader.

Market Nicher

A firm that serves small segments that are often overlooked by larger firms; nichers often achieve high margins rather than high volume.

Product Differentiation

Gaining competitive advantage by offering unique features, performance, style, or design in the physical product (e.g., Clinique).

Service Differentiation

Creating an advantage through the services that accompany the product, such as free shipping, installation, or repair services.

Channel Differentiation

Gaining advantage through the way a company designs its distribution channel's coverage, expertise, and performance.

People Differentiation

Gaining an advantage by hiring and training employees better than competitors do to ensure a superior customer experience.

Image Differentiation

Establishing a brand identity that communicates a product’s distinctive benefits and personality through symbols or celebrity endorsements.

Preemptive Difference

A criterion for choosing a competitive advantage where the specific difference cannot be easily copied by competitors.

Communicable Difference

A criterion for choosing a competitive advantage where the difference is visible and easy to explain to buyers.

Profitable Difference

A criterion for choosing a competitive advantage where the company can introduce the difference in a way that generates profit.

Important Difference

A criterion where the difference delivers a highly valued benefit to target buyers.

Distinctive Difference

A criterion where competitors do not offer the difference, or the company can offer it in a more unique way